Consequences in new codes
List of some major Consequences according to New labour Code
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Code on Wage
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Industrial Relations
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Social Security
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Occupational Safety, Health & Working Conditions
| Particulars | Consequences Type | Earlier | Now | ||||||
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| The Equal Remuneration Act, 1976 |
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| The Payment Of Wages Act, 1936 |
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| The Minimum Of Wages Act, 1948 |
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| The Payment Of Bonus Act, 1965 |
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Consequences of Non-Compliance Under the New Labour Codes
Failure to comply with the New Labour Codes can result in monetary penalties, legal action, and business restrictions. The codes introduce stricter regulatory enforcement to ensure adherence to wage regulations, social security, industrial relations, and workplace safety.
1. Financial Penalties & Fines
Code on Wages, 2019 – Non-payment of wages or violation of wage provisions can attract a fine up to ₹50,000.
Repeated violations may lead to a fine of ₹1,00,000 and/or imprisonment up to three months.
Social Security Code, 2020 – Failure to deposit EPF/ESI contributions or wrongful deductions can lead to fines
up to ₹50,000 and imprisonment up to six months.
Occupational Safety, Health & Working Conditions Code, 2020 – Breach of workplace safety provisions may result in
penalties up to ₹2,00,000. In case of serious injury or fatality, employers may face higher fines and imprisonment up to two years.
📌 Risk: Monetary damage and imprisonment for repeated or serious offenses.
2. Legal Liabilities & Prosecution
Failure to Maintain Registers & Records – Non-maintenance of prescribed registers, returns, and notices
can result in penalties up to ₹50,000.
Unlawful Retrenchment or Dismissal – Violating provisions under the Industrial Relations Code, 2020
can lead to legal disputes and compensation claims.
📌 Risk: Legal disputes and employee litigation.
3. Business Restrictions & Operational Risks
License Suspension or Cancellation – Non-compliance with registration, licensing, or workplace safety
norms may lead to business closure or cancellation of approvals.
Legal Disputes & Employee Grievances – Employees may file cases before the Labour Tribunal or Industrial
Dispute Resolution Authorities for wage disputes, unfair labor practices, or non-payment of benefits.
📌 Risk: Business disruption and regulatory scrutiny.
